Technical Stock Pick: 20% rally in 3 months! Will Mphasis cross 3000 levels?
Mphasis Ltd, part of the IT industry, has rallied by about 20% in the last 3 months to hit a fresh 52-week high in February 2024 and the chart pattern suggests that the rally may not be over yet.
Short-term traders can look to buy the stock for a target above Rs 3000 in the next 2-3 months, suggest experts.
The technology stock hit a fresh 52-week high of Rs 2835 on 19th February 2024. It has rallied from Rs 2325 as on 17th November 2023 to Rs 2779 recorded on 19th February 2024 which translates into an upside on 19.5%.
The stock bounced back from its multi-year support above 2500 levels. The stock witnessed a breakdown from 2500 levels in June 2022.
The stock failed to hold the momentum and drifted lower to test 1600 levels March-April 2023. The level also coincides with the 200-week Moving Average on the weekly charts.
The technology stock bounced back after retesting the 200-week moving average but faced resistance again around 2500 September 2023.
The stock witnessed some consolidation and witnessed some price-wise correction on the weekly charts. The stock bounced back after retesting a 50-week moving average to climb above 2500 levels.
The stock has been hovering around the 2500 market since December 2023 on the weekly charts. It witnessed a strong momentum last week. It rallied more than 6% in a week.
In terms of price action, the stock is now trading well above most of the crucial short- and long-term moving averages placed at 5,10,30,50,100 and 200-DMA on the daily charts.
The daily Relative
